The owners criticised the support the service had been given and said it would be ‘irresponsible’ to continue, while Torbay Council said the company had breached its contract.

Torbay and Brixham councillor Mike Morey said that ‘not many people in Torbay were surprised by the outcome’.

(Image: Don Proctor)

He said: “It lacked bums on seats. It wasn’t well used. What Torbay has got out of it is two pontoons – one in Torquay and one in Brixham.

“But it’s essential that Torbay Council looks carefully at what has happened and learns from its mistakes.

“There was a trial run with Stagecoach and it was clear at the time that it would need a lot of money pumping into it to make it successful.

“When this company came forward to run it, there was a degree of rushing the decision. Perhaps we should have realised the issues when there was a shortage of people coming forward but we jumped on the one operator that was left.”

In July 2015, the fast ferry – which received more than £500,000 in subsidies from the Department for Transport via Torbay Council – was blamed for Greenway Ferry’s withdrawal of services between Torquay and Brixham.

In a public post on social media on Thursday, Greenway Ferry said: “If only Torbay Council had listened to the local ferry operators at the time three years ago – the then family-run Western Lady ferry service, now part of Dartmouth Steam Railway and River Boat Company Ltd, and ourselves, Greenway Ferry.

“Both our companies were providing a service across the bay for £1 each way between Torquay and Brixham – our company had four boats per hour and Western Lady two. When asked to tender for the service we told Torbay Council that there was no business case whatsoever. We already ran the service eight months of the year without subsidy and an all-year-round service would fail – commuters would not use it enough to warrant the service.

“We as a company could not and would not want to be seen to take a subsidy from the taxpayer for the business to fail.

(Image: Don Proctor)

“The council representatives… put proposals together to be voted on in full council and obtained a subsidy which displaced original operators already running an existing service at no cost to the taxpayer.

“Freedom of Information requests showed a cost per passenger journey of £171, based on the total subsidies paid by Torbay Council in January and April 2015 – totally unviable and an absolutely disgraceful use of public money.

“A public enquiry needs to take place to look into the whole situation from start to finish. Torbay Council should be ashamed – this waste of public money is of their own creation.

“The bay has gained nothing but lost local operators over this farce and even when subsidising the service never gave enough support to make it work.”

Michael Way said it was a ‘disgraceful misuse of public funds’ while Mike Auld said ‘it should never have been given the go-ahead in the first place and I’m surprised it lasted this long’.

Torbay Council is aware of the departure of the ferry. A spokesman said: "Brixham Express has notified us that they are withdrawing their ferry service between Brixham and Torquay. We are disappointed to hear this and as they are in breach of their contract we are unable to comment any further at this time.

"Brixham Express has informed us that they have contacted all of their customers, so if you have a pre-booked or long term ticket with the company please contact them direct for a refund."